Sell or rent high interest

[Brenda Walker]

With present economy, my interest rate is now 8%, which is costing me 1,000 a month in interest. Some months I don’t make but interest only.  It is my primary home, which I haven’t moved past this stage in investing, yet. My question: rent the house, rent a room, or sell and purchase in a cheaper market?  

[Ashley Evans]

Quote from @Brenda Walker:

First thing, my daughter had congestive heart failure and I was preoccupied with her health. The interest rates started going up with my bank the month she was hospitalized.  Same with the prime interest rates.

If I rented two rooms, I'd leave my room open for me to come back when I wanted to. In between the times, I'd stay with my son in southern Illinois The market value of my house came from a real estate agent wanting to list my home. I paid 215,000 and owe 133,000. The high value of my house reached about 375,000 and now real estate agent suggested its down to 324,000 now. Interest is now 8.2% prime. All my pension 4200 goes into my HELOC account. I have been substitute teaching 1 or 2 days a week.

If I sold, I'd buy a nice house for under 200,000.  (I have a 2022 car which I owe 37,000 and two credit cards with zero interest for 1 and 2 years.)     Illinois taxes are higher but housing is lower. If I sold, I'd buy a house in Illinois or possibly Florida.

   I think i addressed all your questions.  I'm approaching 70 years old and not concerned with investments.  A couple of years ago, I thought about renting house and buying an RV to live in and travel between kids homes and Florida.  I have options but stuck on what could be  best option.  That's where I was before the interest rates increased so quickly.   I was interested in starting a assisted living group home because they are needed in this area and also in southern Illinois.  It is hard for me to see which direction would be best for me.  Any suggestions would help.  Thank you for 

Analyze the numbers in each scenario and make a decision based on the numbers paired with your risk tolerance. Nashville has an incredibly strong market. If you can afford to hold on to the asset and are okay with the maintenance and risks associated... then I would hold it and let it continue to appreciate. If you choose to hold it...think about whether the age of your property raises maintenance cost concerns and if you are truly committed to being a landlord. This is a deeply personal decision and it all boils down to how much you'll earn by selling it versus how long it will take you to make the same amount by renting the property. Hope this helps.